Landlord wants credit check? Client says "No way!"

Reblogger Wallace S. Gibson, CPM
Property Manager with Gibson Management Group, Ltd.

I'd NEVER waive a credit check and in our area, many poorly qualified residents often use newbie real estate agents that they have told LIES to.....I ONLY hear "they will make GREAT tenants from real estate agents"   HOW DO THEY KNOW?

 

Original content by Wayne and Jean Marie Zuhl 0790808

Stack of hundredsWe're working with a young couple who are looking to rent a house. 

He's a seasonal worker - makes big money for 3 seasons, but winter is a bit slow - and, as a result, their credit score is low. They probably wouldn't qualify for a mortgage, but they've saved enough money to pre-pay a year's rent in cash. 

There are plenty of rentals in Union County to choose from, and we found them the perfect home. The landlord loved them, they agreed to the deal, and our clients pre-paid one full year's rent in cash. 

Then, two days before our clients were to move in to their new home, the landlord's agent called us. The landlord wants a credit report on the tenants. Normally, this is pretty standard, of course. But, when we explained the extenuating circumstances, the landlord insisted. 

Our clients refused. 

And the deal falls through. The landlord had a year's rent in cash and turned it down for a technicality. 

What do you think?

 




~ Wayne & Jean 


Union County, NJ - a great place to live and work!


If you're looking to buy or sell a property in Union County, call us at 908-917-4189 or email TeamZuhl@gmail.com.

Check us out on Facebook at Real Estate Today and Things to Do in Union County! Follow us on Pinterest and Twitter.


All opinions, information and data provided is deemed reliable but is subject to errors and omissions. Not intended to solicit other Brokers' clients. We cooperate with them fully. 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
ActiveRain Community
Groups:
Property Management
Best Business Practices
Property Management Professionals
Rental Agents and The Single Family Rental Market
Best Practices

Spam prevention
Show All Comments
Rainmaker
790,429
Carol Zingone
Berkshire Hathaway Home Services Florida Network Realty - Jacksonville Beach, FL
Global Realtor in Jax Beach, FL - ABR, CRS, CIPS
I'm not certain that was a wise decision on the landlords part: a credit check versus a pre paid one year lease?
Jul 01, 2013 09:01 PM #1
Rainer
1,756,848
Conrad Allen
Re/Max Professional Associates - Webster, MA
Webster, Ma, Realtor

How do they know indeed Wallace?  In Massachusetts they cannot pre-pay a year's rent.

Jul 01, 2013 09:02 PM #2
Rainmaker
2,346,102
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

No credit check, no rental property, it's really just that simple.  "They will make great tenants" is a stupid statement for an agent to make, they have no idea.

Jul 01, 2013 09:07 PM #3
Rainmaker
434,738
Dick and Dixie Sells
Sells Real Estate, LLC - Trinity, FL
Realtors, Tampa Bay Florida Homes For Sale

Nope, would not do it. Had one tenant that refused a background check. WHOA  that was one big red flag!

Jul 01, 2013 09:17 PM #4
Rainmaker
4,797,811
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I can understand the background check, not to sure about the credit check in this scenario.

Jul 01, 2013 09:37 PM #5
Rainmaker
3,344,722
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Wallace, a toss up without more information! Cash is king most of the time! Enjoy your day!

Jul 01, 2013 09:39 PM #6
Rainmaker
1,854,574
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

Once in the house, what would be someone's motivation for paying a year in advance in cash?  That would raise my eyebrows!  And how can someone deny a credit search?  Does someone have to give permission to check their credit when applying for a rental?

Jul 02, 2013 10:38 PM #7
Rainmaker
61,519
George Kando, New England Realty Group
New England Realty Group - Scarborough, ME
Southern Maine's Real Estate Team of Choice

Sometimes a background check is more or as important as the credit check. There are people who have great credit but no ethics when it comes to use of the property or more importantly abuse! It's important to check references , evictions, small claims court. You never know. Security deposits aren't always enough to cover thedamage these bad tenants can do.

Jul 03, 2013 01:59 AM #8
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainmaker
1,239,346

Wallace S. Gibson, CPM

LandlordWhisperer
Ask me a question
*
*
*
*
Spam prevention

Additional Information